A smart off-grid subsidy is only smart if executed in a time-limited, rule-bound and deployed with a laser focus to produce demonstrable social and economic impacts and such impacts should be measured using rigorous statistical analyses.
It is inclusive and offsets immediate costs by participating firms through equity replacement and have savings passed on directly to the end consumer in proportionate lower pricing of energy product.
A smart subsidy is an affordability accelerator which facilitates scale and drives affordability in the long term. It’s execution model must, therefore, combine supply and demand subsidies . The purpose of supply side subsidy is to reduce cost/risk for the company.
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